KCGI "Hanjin Group, Governance Improvement... Conditions for Exit Established, Stake Sale"

Kang Sung-bo, CEO of KCGI, is attending a press conference of the shareholder alliance for the normalization of Hanjin Group held at Glad Hotel Yeouido, Yeongdeungpo-gu, Seoul on the 20th. Photo by Kim Hyun-min kimhyun81@

[Asia Economy Reporter Hwang Yoon-joo] On the 28th, KCGI announced that the governance structure of Hanjin Group has improved and that it has sold its entire stake to Hoban Construction.

In a press release that afternoon, KCGI explained, "We judged that the conditions for exiting our investment in Hanjin KAL have been established."

Hoban Construction disclosed that it will acquire 9.4 million shares (13.94%) of Hanjin KAL from KCGI in cash. The acquisition is for simple investment purposes, and the expected acquisition date is April 4. Accordingly, the second largest shareholder of Hanjin KAL is expected to change from KCGI to Hoban Construction.

KCGI stated, "Based on the corporate governance improvements over the past three years, Hanjin Group's financial and profit structures have improved, and a decision-making system and corporate governance have been established where multiple shareholders play a sound role in checking and balancing the management, moving away from the owner's family's deviant and unilateral management behavior."

KCGI added, "We believe that Hanjin Group is currently on a springboard for long-term growth," and evaluated that "through integration with Asiana Airlines, significant long-term development is expected."

Furthermore, KCGI emphasized that it refrained from generating large profits by temporarily boosting stock prices without improving the company's fundamentals.

KCGI stated, "Regarding the sale of shares, the fund adhered to the principle of selling the entire stake to a buyer who can assist the current management in the company's development and effectively check the management when they make wrong decisions, rather than selling shares on the market in a way that could affect the stock price."

This content was produced with the assistance of AI translation services.